More Chance Of Short Sale Success Thanks To Wells Fargo’s Screw Up in MA – They have to give home back to foreclosed owner!!!

Posted on January 9th, 2011 in All Articles.

CHICAGO IL. “Short Sale Super Man” Big Picture. Your “return to equity” date just got father into the future. Good News: The probability of Short Sales Being Approved Just Got Higher.

When will the banks see – foreclosure as a tool is a battering ram. A flawed tool. Short Sales return more money on the dollar to them, provide a “win win” as best as can be provided in most situations. Why is it that Wells Fargo is so hard to get them to approved short sales when you read about how they are screwing up their REO foreclosures. Now they have to give back a foreclosed home… because Wells Fargo   failed to ensure the assignment of the mortgage notes to show they were executed and recorded in the registry of deeds before the dates of the foreclosure sales….

I have been writing about the “return” foreclosure pipeline and how long it it. An event occurred last week that is likely to cause further delays in the foreclosure process across the country.  In an unanimous 6 to 0 ruling, the Massachusetts Supreme Court ruled Friday that U.S. Bank and Wells Fargo did not have the legal right to foreclose on two homes in the state, invalidating the seizure of the properties. This decision  raising further clouds on the lender’s process for documentation – as related to the correctly transferring  ownership for mortgages packaged previously as securities.  This is more of the Wall street hangover we are all going through. The core issue here both lenders both failed to ensure the assignment of notes – to prove they were executed and recorded in the registry /deeds office before the foreclosure sales.

Pretty Basic stuff – if they can’t get that right here — imagine all the other problems that exist once one gets digging. And digging is going on across the country as angry homeowners hire more and more specialized attorneys. This all forces delays and makes the banks’ appetites bigger for approving short sales in my opinion.

Foreclosure as a tool has risks now–even though the laws favor the banks in most states. Analysts warn that the decision could have far-reaching implications on loans that have already been liquidated, those in the process of foreclosure, and sales of foreclosed bank-owned homes. How far reaching..??? Not sure yet.  But the issue here is that this case actually OVERTURNED sales that already occurred. So that means that the owners are going to “get the keys back” I guess.

And for those buyer’s who are buying REO foreclosures. There is risk now. More risk than buying the good old short sale. This ruling could raise title issues in the minds of the potential buyers of REO properties that they might have to “give the home back”. A recent buyer I was working with remarked that this was a risk — having heard about the robo signing issues. This all will likely extend the pipeline further, and make everyone’s appreciation come slower, and the “return to equity dates ” get pushed back.

“Short Sale Super Man”
Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..
Phone: (312) 953-6725.
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Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor.
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